Southwest Airlines Is Devaluing Rapid Rewards Points – Here’s Why It Matters

Always Turn Left: Southwest Rapid Rewards Devaluation Loyalty Under Pressure

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Loyalty programs are supposed to reward, well, loyalty—but lately, airlines have been redefining that concept.

In this article, we’ll break down:

• What’s changing in the Rapid Rewards program
• Why this devaluation matters for Southwest loyalists
• The bigger trend of airline loyalty programs losing value
• How customers can adapt to protect their points

Let’s dive in... 🤿

🔎 What’s Changing With Southwest Rapid Rewards?

Southwest Airlines has confirmed a devaluation of Rapid Rewards points, meaning travelers will now need more points to book the same flights. While the exact percentage increase in points required varies based on the route, initial reports suggest an increase of about 4-8% in redemption costs for Wanna Get Away fares—the lowest fare class.

Southwest has always marketed Rapid Rewards as one of the simplest and most customer-friendly loyalty programs, with a clear revenue-based system:

• Points are tied to the cash price of the fare
• No blackout dates
• No hidden restrictions

But this devaluation means that Southwest points are now worth less, plain and simple. And this isn’t the first time. This follows multiple devaluations over the past decade, including a previous devaluation in 2021, when point values dropped from roughly 1.5 cents per point to around 1.3 cents per point. With the latest change, the downward trend continues.

💥 Why This Hurts Southwest Loyalists

1️⃣ The "Low-Cost Carrier" Promise Feels Weaker

Southwest has always positioned itself as the customer-friendly airline:
✅ No checked bag fees
✅ No change fees
✅ Simple points system

But when loyalty points are constantly being devalued, customers start questioning the actual value of their loyalty. If your points are losing value every few years, how is that any different from the sneaky tactics used by major airlines like American or Delta?

2️⃣ Rapid Rewards Was Already Losing Value

Frequent Southwest travelers have already noticed that:

• Points don’t stretch as far as they used to
• Last-minute fares are skyrocketing, making redemptions pricier
• The Companion Pass is harder to maximize when redemption costs keep rising

For a program that once prided itself on transparency and fairness, this latest devaluation feels like another step toward the airline squeezing more money from its most loyal customers.

3️⃣ Inflation & Higher Fares = Double Trouble

It’s bad enough that cash fares are going up due to inflation and rising operational costs. But when your points also lose value at the same time, you’re getting hit from both sides.

Imagine a Southwest flight that used to cost 10,000 points:

• If the cash price goes up from $150 to $175, it already requires more points.
• If points are devalued by 5-8%, it now costs 11,000 points instead of 10,000.

That means customers are paying significantly more—even if they were sitting on a healthy stash of points.

✈️ The Bigger Trend: Airline Loyalty Programs Are Devaluing Across the Board

Southwest isn’t alone here. Over the past few years, all major airlines have been chipping away at the value of their loyalty programs.

• Delta SkyMiles devalued points so aggressively that travelers now call them SkyPesos
• United MileagePlus recently increased redemption rates, making award flights significantly more expensive
• American Airlines AAdvantage moved to dynamic pricing, leading to unpredictable (and usually higher) point costs

Why Are Airlines Doing This?

1️⃣ Loyalty Programs Are Big Business

• Airlines make billions selling miles to banks (for credit cards)
• Devaluing points reduces liabilities while increasing revenue

2️⃣ Travel Demand Is Strong

• With post-pandemic revenge travel in full swing, airlines don’t need to be generous with rewards

3️⃣ Dynamic Pricing Means More Control

• Airlines are shifting away from fixed redemption charts in favor of pricing that constantly adjusts

This shift means that loyalty points aren’t as valuable as they used to be. The days of booking aspirational trips with a stash of points? They’re becoming a thing of the past.

🛠️ How Travelers Can Protect Themselves

With airlines constantly devaluing points, what can frequent flyers do?

1️⃣ Use Points Sooner Rather Than Later

• Points always lose value over time, so holding onto them is risky
• If you have Southwest points, use them ASAP before future devaluations

2️⃣ Diversify Your Points & Loyalty

• Don’t put all your eggs in one airline’s basket
• Transferable credit card points (Chase Ultimate Rewards, Amex Membership Rewards) offer more flexibility

3️⃣ Focus on Earning Points That Don’t Devalue as Fast

• Cash back cards are more stable than airline-specific points
• Chase Ultimate Rewards points can be transferred to multiple airlines

4️⃣ Track Changes & Adjust Your Strategy

• Stay updated on airline loyalty program changes
• Consider booking travel with cash if points aren’t offering a good deal

🚀 Final Thoughts: Is Southwest Losing Its Edge?

Southwest Airlines built its brand on customer-friendly policies. But with the latest Rapid Rewards devaluation, many longtime Southwest fans are asking: Is the airline still as rewarding as it used to be?

While Southwest still offers great perks like free checked bags and flexible changes, these frequent point devaluations are a warning sign. If Southwest keeps eroding the value of its loyalty program, customers may start looking elsewhere.

At the end of the day, loyalty should go both ways. If Southwest wants to keep its loyal customers, it needs to stop making Rapid Rewards less rewarding.